Islamabad, May 14, 2025 — In a bid to promote digital transactions and curb fuel smuggling, the government is considering a dual pricing model for petroleum products across the country. Under the proposed scheme, consumers would be offered a PKR 5 per liter discount when purchasing petrol or diesel through digital payment methods.
As per initial details, the model would set two price tiers for POL (Petroleum, Oil, and Lubricants) products:
- Cash Payment Price: PKR 255 per liter
- Digital Payment Price: PKR 250 per liter
The price differential will be achieved by reducing the Petroleum Levy (PL) on digital transactions, allowing the government to incentivize traceable, documented fuel sales without incurring a revenue loss.
Officials claim this initiative will significantly boost documentation in the petroleum sector, leading to better tax compliance and curbing of black-market activities. “Smuggled fuel rarely flows through digital channels. This policy will help trace every drop,” noted an Energy Division spokesperson.
For fuel dealers, the shift offers advantages including reduced legal risks, incentives for digital volumes, and improved supply chain transparency. The wider impact is expected to accelerate financial inclusion, support digital banking infrastructure, and lower cash-handling costs.
The Ministry of Energy is preparing a detailed proposal to present before the Economic Coordination Committee (ECC) for formal approval in the coming weeks.
